Precise(SZ:300442) Changjiang Securities·2024-05-06 02:33Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company has shown significant year-on-year revenue growth, with a 53.7% increase in Q1 2024, reaching 1.242 billion yuan. The net profit attributable to shareholders also increased by 43.8% to 474 million yuan [6][7]. - The IDC and AIDC businesses are progressing steadily, with the traditional IDC industry expected to benefit from two main opportunities: structural supply shortages for high-power cabinets and increased demand for AI servers [8][9]. - The company has successfully expanded its AIDC business, contributing to a new growth trajectory, with the delivery of five new computing centers and approximately 30,000 cabinets [7][8]. Summary by Sections Financial Performance - In Q1 2024, the company achieved revenue of 1.242 billion yuan, a year-on-year increase of 53.7%. The net profit attributable to shareholders was 474 million yuan, up 43.8% year-on-year, while the net profit excluding non-recurring items was 471 million yuan, reflecting a 45.5% increase [6][7]. - The gross margin for Q1 2024 was 47.3%, down 6.6 percentage points year-on-year but up 1.2 percentage points quarter-on-quarter, indicating improved profitability in the AIDC business [7]. Business Expansion - The company has entered a new phase of revenue contribution from multiple parks, having delivered five new computing centers, with a total of approximately 76,000 cabinets delivered by the end of 2023, a 65.22% increase from the end of 2022 [7][8]. - The company has also expanded its AIDC business significantly, deploying large-scale computing modules in key regions, which is expected to drive future growth [7][8]. Market Opportunities - The report highlights that the traditional IDC industry will see opportunities from high-power cabinet shortages and increased demand for data centers in major cities due to the AI wave, shifting the demand dynamics from end-users to upstream hardware manufacturers [8][9]. - The company is well-positioned to leverage these trends, especially with its strong relationships with leading internet companies and its resources in high-power cabinets [8].